The U.S. dollar came under pressure against its most major counterparts in the Asian session on Monday, as expectations for a Fed rate cut increased after last week’s GDP data showed that a gauge of inflation slowed from the previous quarter.
Although the U.S. economy grew much faster than forecast in the first quarter, Federal Reserve’s preferred inflation measure, the core PCE price index, slowed notably.
The data showed that core consumer prices, which exclude food and energy prices, slowed to 1.3 percent in the first quarter from 1.8 percent.
Investors await the Fed’s two-day meeting concluding on Wednesday.
No rate change is expected, but the accompanying statement and Fed Chairman Jerome Powell’s subsequent press conference are likely to attract attention.
This week’s U.S. economic calendar includes reports on jobs, personal income and spending, consumer confidence, pending home sales, manufacturing and service sector activity.
The greenback declined to 1.2940 against the pound, compared to last week’s closing value of 1.2910. The greenback is poised to find support around the 1.32 level.
The greenback edged down to 1.0187 against the Swiss franc early in the session and held steady thereafter. The pair finished last week’s deals at 1.0196. Next key support for the greenback is likely seen around the 0.99 level.
After rising to 1.1145 against the euro at 9:30 pm ET, the greenback reversed direction and slipped to 1.1166. The greenback is likely to find support around the 1.135 region, should it falls again.
The greenback fell to 0.7061 against the aussie and 0.6681 against the kiwi from Friday’s closing values of 0.7036 and 0.6656,respectively. The next possible support for the greenback is seen around 0.73 against the aussie and 0.68 against the kiwi.
On the flip side, the greenback advanced to 111.73 against the yen and 1.3465 against the loonie, from its early low of 111.54 and a 5-day low of 1.3450, respectively. On the upside, 113.00 and 1.36 are possibly seen as the next resistance levels for the greenback against the yen and the loonie, respectively.
Looking ahead, Eurozone economic sentiment index for April is due in the European session.
In the New York session, U.S. personal income and spending data for March are set for release.
The material has been provided by InstaForex Company – www.instaforex.com